Centerbridge Capital Partners, founded by Mark Gallogly, the former head of private equity at The Blackstone Group, and Jeff Aronson, former head of distressed securities at Angelo, Gordon, is set to launch. The New York-based shop will have a hybrid approach, according to an insider, investing in both distressed debt and distressed private equity.
Gallogly and Aronson began hiring a team in recent weeks. Park Hill Group, the placement agent backed by Blackstone, is putting the finishing touches on the fund. Gallogly left Blackstone last fall and Aronson left Angelo, Gordon in March 2005.
Observers say Centerbridge's $3 billion fund could be the largest dedicated to distressed investments. But a few firms have raised or are in the process of raising distressed debt funds that come close. Matlin Patterson has a $2.2 billion fund; Avenue Capital Group is reportedly raising a $1.68 billion fund and Oaktree Capital Management is raising a $1.77 billion fund.